Erm... it kind of does need new lines, since that is how it parses the file...
No new lines means it would only parse the first line as the only file, and the hash would be off, since it would have the rest of the data as the hash...
Since you are running this on a windows box, localhost, I assume you are only using this for your personal use? Not to be condescending, but the way this system works, the songlist.php file has to be visible to any clients who want to use the player. So if you are expecting to have other people be able to use this, and you have it pointed to localhost, it won't work.
If you are using this only for your personal use, you might want to look into another addon, since this is targeted more towards public servers with world readable webservers.
That explains the problem, thanks.